Lease vs. Reimbursement

//Lease vs. Reimbursement
Lease vs. Reimbursement2018-04-30T16:21:26+00:00

Letting your employees choose and purchase the vehicles they want may make sense for your company if you are comfortable providing them with an allowance or reimbursing them for mileage. However, while reimbursements may save you the headaches from managing and maintaining your fleet vehicles, it also takes away the control you have over the types of vehicles your employees drive.

FINANCIAL SITUATION

Reimbursing your employees for their personal vehicle use may seem cost-effective, but a lease with a fleet management company like VWGoA Fleet Services can provide additional discounts and incentives thanks to their relationships and knowledge in the automotive industry.

A car allowance is designed to cover all, or a portion of, vehicle expenses, including the cost of ownership, interest, depreciation, insurance and maintenance. Generally, you would pay your employees between $500 and $1000 per month depending on your employee’s position – or reimburse them based on mileage used, directly paying your employees for the actual use of their vehicles for business. This is a potentially time-consuming reimbursement strategy for you and your employees.

COMPANY IMAGE AND MORALE

Reimbursing your employees for the use of their personal vehicles removes your control over the look and image of your fleet, while leasing ensures your fleet vehicles stand up to the company image. This can improve the morale of your employees, and is a proven advantage when hiring.

SAFETY AND LIABILITY

When you leave the vehicle choice and maintenance up to your employees, you are putting their safety at stake. Leasing gives you the benefit of choosing the latest models and offering the best in safety features – and ensuring your fleet vehicles are safe will reduce liability if an employee is in an accident. Partnering with an experienced fleet management company often comes with the added benefit of safety training services as an included item in your lease.

MAINTENANCE AND MANAGEMENT

When you lease your fleet, national resources that ensure your vehicles are maintained properly come standard with your fleet management services, whereas when your drivers own their vehicles, you can never be sure if they are performing preventive maintenance or repairs on time. In addition, fuel costs can be reduced, and other valuable services like roadside assistance are available when leasing with an experienced fleet management company like VWGoA Services.

TIME SAVING

Reimbursing your employees requires them to spend time and energy saving receipts and filling out reports – not to mention maintaining their vehicles. Leasing your fleet takes that burden away from them, leaving maintenance and other administrative headaches to your experienced fleet management partner.

To speak with one of our consultants and learn more about our programs and customized fleet solutions, click here or call 888-698-9495.